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Letter Re: Gold and Silver Coins as an Investment
James Wesley,
I’d like your input regarding the purchase of gold and silver coins from
third party vendors. Instead of paying $1,000+ for a single gold coin of one
troy ounce. I’d like to buy ten 1/10th troy ounce gold (or silver) coins.
I feel smaller denominations of “hard” currency promote better
trade/purchase power. I have noticed in a multitude of Gun/Survival forums/magazines
various
companies that offer coins that are not directly from the U.S. mint but are
[in smaller fractional sizes] than what you normally purchase from the US Mint.
I can foresee having a handful of one troy ounce gold coins [when] all you
need is a
dozen chickens. Any thoughts? - Christopher W.
JWR Replies: The situation that you describe is precisely
what I showed in the Barter Faire ("For an Ounce of Gold") chapter
of my novel "Patriots". A
full ounce of gold is far too compact a form of wealth to be practical for
day-to-day barter transactions. That is why I recommend
that readers here in the US invest in small-denomination US pre-1965 silver
dimes, quarters, and half-dollars, for barter. (Or get their equivalents, if
you live
elsewhere, such
as pre-1948
(pre-decimal ) silver English coinage, or decimal
or pre-decimal 1964 or earlier silver coinage in Australia.) The
prospect of making "change" from gold coin transactions with a cold
chisel is neither
practical nor aesthetically appealing.
